Correlation Between Asian Television and Velan
Can any of the company-specific risk be diversified away by investing in both Asian Television and Velan at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Asian Television and Velan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asian Television Network and Velan Inc, you can compare the effects of market volatilities on Asian Television and Velan and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Asian Television with a short position of Velan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Television and Velan.
Diversification Opportunities for Asian Television and Velan
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asian and Velan is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Asian Television Network and Velan Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Velan Inc and Asian Television is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Asian Television Network are associated (or correlated) with Velan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Velan Inc has no effect on the direction of Asian Television i.e., Asian Television and Velan go up and down completely randomly.
Pair Corralation between Asian Television and Velan
Assuming the 90 days horizon Asian Television Network is expected to under-perform the Velan. In addition to that, Asian Television is 4.16 times more volatile than Velan Inc. It trades about 0.0 of its total potential returns per unit of risk. Velan Inc is currently generating about 0.17 per unit of volatility. If you would invest 516.00 in Velan Inc on August 27, 2024 and sell it today you would earn a total of 645.00 from holding Velan Inc or generate 125.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asian Television Network vs. Velan Inc
Performance |
| Timeline |
| Asian Television Network |
| Velan Inc |
Asian Television and Velan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Television and Velan
The main advantage of trading using opposite Asian Television and Velan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Television position performs unexpectedly, Velan can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Velan will offset losses from the drop in Velan's long position.| Asian Television vs. Velan Inc | Asian Television vs. Dorel Industries | Asian Television vs. Goodfellow | Asian Television vs. iShares Canadian HYBrid |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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